Was the offer between you and the buyers accepted by the lender. If not they probably can cancel the deal. This happens very often in Az because lenders take so long. I always tell my short sale buyers it could take up to 60 or 90 days for the bank to approves it.

Matt
If you need legal advice , ask an attorney.
If you are represented by a REaltor, this question should be directed to them.
If you are selling without professional representation, then I would definitely recommend asking an attorney.

I wish I could be more helpful but in adhering to the Realtor Code of Ethics, I do not have adequate knowledge of your situation to offer advice. You should consider this post when reading others responses.

It really depends on what the contract said. It is likely the buyers are very free to walk away on a short sale, but you need to refer to your contract and ask your agent if you have any recourse.

The good news for you is that this buyer might be accelerating the bank in considering your short sale and you might get an answer from them on what they will accept.

Sorry to hear that they walked on you Matt. Best of luck.

Matt,

I assume that the buyers had a clause in the offer to purchase that provided them the opportunity to rescind their offer at any time prior to the bank's approval. If that's the case, one can only guess why they would withdraw it only two weeks into the transaction. They may have had a change in their employment or perhaps found another home. It is always nice to know the entire story. Sorry you have lost this buyer and hope another is lurking and moving in soon. Best of luck!

All executed contracts are governed by terms and conditions. Review contract with listing agent determine if you have any recourse.

Most real estate contracts have an option period allows buyer to cancel if they prefer not purchase home. Undetermined unless you review terms of agreement. Contact an attorney if you dont have a listing agent representing you.